(8)	Long-Term Debt

On July 21, 2011, the Company entered into a five-year revolving Credit Agreement (the “Facility”) with Wells Fargo Bank, National Association and Wells Capital Finance, LLC (collectively, the “Lender”). The $120.0 million Facility replaced the Company’s previous $120.0 million credit facility with Bank of America, N.A. and Wells Fargo Retail Finance, LLC, and expires July 20, 2016. Additional costs paid to Lender in connection with the new facility were $0.5 million. Those fees have been deferred and will be amortized over the term of the new facility. Loan advances are secured by a security interest in the Company’s inventory and credit card receivables.

Based on the Company’s average excess availability, the amount advanced to the Company on any Base Rate Loan (as such term is defined in the Facility) bears interest at the highest of (a) the rate of interest in effect for such day as publicly announced from time to time by Lender as its “prime rate”; (b) the Federal Funds Rate for such day, plus 1.0%; and (c) the LIBO Rate for a 30 day interest period as determined on such day, plus 2.0%. Amounts advanced with respect to any LIBO Borrowing for any Interest Period (as those terms are defined in the Facility) shall bear interest at an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of one percent) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate (as defined in the Facility). The Facility contains various restrictions that are applicable when outstanding borrowings reach certain thresholds, including limitations on additional indebtedness, prepayments, acquisition of assets, granting of liens, certain investments and payment of dividends.

On February 6, 2013, the Board of Directors of the Company unanimously approved a First Amendment (the “Amendment”) to its Credit Agreement with the Lender, amending Section 7.06(c) of the Credit Agreement to permit the Company, subject to certain conditions set forth in the Amendment, to repurchase, redeem or otherwise acquire Equity Interests issued by the Company not to exceed $1.0 million in the aggregate in each fiscal year. Under the Facility, “Equity Interests” is defined as all of the shares of the capital stock of a person and all of the other warrants, options or other rights of a person to purchase capital stock of such person. Such amendment was announced on Form 8-K filed by the Company with the Securities and Exchange Commission on February 12, 2013 and a copy of the Amendment is attached to such 8-K. Except to the extent specifically set forth in the Amendment, no other consent, waiver of, or change in any of the terms, provisions or conditions of the Facility is intended or implied.

On November 22, 2013, pursuant to Section 2.16 of the Facility, the Board of Directors unanimously approved to request an increase the revolving credit commitments of the Company by $10.0 million (the “Commitment Increase”); thereby, increasing the overall Facility from $120.0 million to $130.0 million. Except for the Commitment Increase, and as discussed below, the Facility remains unchanged and in full force and effect.

On May 30, 2014, the Company closed on an Amended and Restated Credit Agreement (the "Amended Credit Agreement") with Wells Fargo Bank, National Association (“Wells Fargo”). The Amended Credit Agreement amends and restates the Facility and extends credit to the Company in an aggregate principal amount of up to $142.5 million. The Amended Credit Agreement is for an extended term through 2019 and provides access to additional availability of approximately $17.5 million. The additional availability will be collateralized by certain Company assets including, but not limited to, five Company owned properties and expanded access to inventory assets. As part of the negotiation of the Amended Credit Agreement, the Company pledges certain collateral to Wells Fargo under the terms of an Amended and Restated Security Agreement that was executed as part of the closing on the Amended Credit Agreement on May 30, 2014 (the “Amended Security Agreement”).

Notes payable outstanding at May 4, 2014 and May 5, 2013 under the Amended Credit Agreement aggregated $85.2 million and $71.6 million, respectively. Wells Fargo had also issued letters of credit aggregating $9.2 million and $8.2 million, respectively, at such dates on behalf of the Company. The interest rates on the outstanding borrowings at May 4, 2014 were 2.19% on $80.0 million of the outstanding balance and 4.25% on the remaining $5.2 million. The Company had additional borrowings available at May 6, 2014 under the Amended Credit Agreement amounting to approximately $24.2 million

The Company entered into an equipment financing arrangement with a third party which was finalized on February 3, 2014 whereby certain equipment was sold and subsequently leased back. The company accounts for the lease using the financing method. Under the financing method, the Company accounts for the equipment subject to lease as an asset and the lease payments as interest on the financing obligation. As of May 4, 2014, the outstanding balance on the financing obligation was $2.1 million and the implicit interest rate was 22.6%.

Interest expense on notes payable and long-term debt, excluding capital lease obligations and amortization of debt financing costs, aggregated $0.6 million and $0.7 million during the first quarter of fiscal 2015 and fiscal 2014, respectively.